Finance
What is a 'conforming loan' in Rhode Island?
AA loan that conforms to the borrower's financial situation
BA mortgage that meets Fannie Mae/Freddie Mac purchase guidelines, including loan limits, underwriting standards, and eligible property types✓ Correct
CA government-guaranteed loan
DA loan that conforms to Rhode Island usury limits
Explanation
A conforming loan meets the guidelines set by Fannie Mae (FNMA) and Freddie Mac (FHLMC), including the conforming loan limit for the area. These loans can be sold in the secondary market, providing lenders with liquidity.
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